SwiftPay Card

Western Union and Verizon Wireless have signed a multi-year contract, which will allow Verizon Wireless’ ‘Prepay’ customers to use the Western Union ‘SwiftPay’ card to replenish minutes on their accounts. Verizon Wireless ‘Prepay’ customers will be able to simply present the ‘SwiftPay’ card and their cash payment at more than 30,000 Western Union agent locations. The payment is posted to the customer’s account on a near real-time basis, replenishing the account within minutes. Rollout to customers in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, and Georgia will begin this month.

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Heavenly Calling

Beverly Hills, CA-based MAXX International and NY-based Telstar International have set plans to begin marketing affinity prepaid telephone cards in English and Spanish featuring Pope John Paul II along with selected prayers by his Holiness printed on the cards. This is the first time that photographs of the Pope, along with his prayers, will have appeared on prepaid telephone cards. The marketing will begin in two weeks. A series of four prepaid telephone cards will be marketed throughout the USA, Mexico, Canada, Brazil, Argentina, the Philippines and Peru. The cards will be sold in denominations of $5, $10 and $20. MAXX will also distributed the cards through religious stores, religious gift shops, religious publications, and its Internet sited TheGospel.com. Last summer, Maxx signed an exclusive license agreement with the Treasures of St. Peter’s in The Vatican for the rights to market and distribute Vatican-branded credit, debit and telephone cards. There are approximately 60 million Catholics in the USA and over one billion Catholics worldwide. (CF Library 6/30/00; 11/06/00)

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Carreker Global

Dallas-based Carreker Corp. has signed a new fraud prevention contract in excess of $1 million with one of the largest banks in Australia and has completed its first licensing agreement in the UK to provide its ‘eiManager’ ATM monitoring software to Halifax plc. In Australia, Carreker will provide its ‘FraudLink On-us’ and ‘FraudLink Deposit’ software to monitor potential fraudulent activity across all check transactions within the bank’s operations. In the UK, Carreker’s ‘eiManager’ will provide ATM fault and device monitoring, as well as automated dispatch and escalation of service requests, to the more than 2,500 ATMs operated by Halifax throughout the U.K.

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CyberCash Bankruptcy

CyberCash announced Friday morning that due to its inability to raise the financing necessary to consummate the company’s previously announced merger with Network 1 Financial, the companies have terminated their merger agreement and entered into an asset purchase agreement under which Network 1 Financial will acquire all of CyberCash’s operating assets. The transaction will be consummated under a Chapter 11 bankruptcy proceeding filed Friday in Delaware. As a result, Nasdaq trading was immediately halted in CyberCash. CyberCash stock closed at 25/32 Thursday, down more than 95% from a 52-week high of $16 and near a 52-week low of 1/2. CyberCash said Friday it will continue to support its existing customer base of more than 27,500 Internet merchants and more than 100,000 software users. The Company will also maintain all normal business functions including marketing and sales activities designed to generate new business, partner marketing programs, and completing scheduled enhancements to its Internet payment processing service while to bankruptcy proceedings are underway. The decision to file bankruptcy comes less than three months after CyberCash announced it would purchase Network 1 for $64.5 million in stock. The parties hope to close the asset sale transaction in early April. Network 1 Financial Corp, headquartered in McLean, VA, provides electronic payment processing systems and merchant accounting, employs 120 people and had revenue of $23.6 million in 2000. (CF Library 12/15/00; 1/10/01; 2/02/01)

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Brokat Rated #1

Brokat Technologies, a global leader in software that enables user-centric business, today announced Brokat PaymentWorks Mobile was ranked as the No. 1 wireless payment software by Celent Communications. Acknowledged for its strong flexibility, scalability and connectivity to back-office systems, PaymentWorks Mobile was additionally noted for its multi-channel support and open architecture. Brokat was also rated as the No. 1 provider of integrated wireless financial services software by Celent in October, 2000.

Celent based the ranking on ease of use, multi-channel support, the types of wireless payment supported, overall functionality, number of clients live or in pilot, wireless devices/protocols supported, global focus, deployment time, and experience in e-payments. Brokat was one of the eleven providers evaluated by Celent in this category.

“The rankings we receive from an independent analyst firm like Celent reinforce Brokat’s leading position in wireless payment software,” said Scott Geddes, vice president of mobile commerce for Brokat Technologies U.S. “Celent’s recognition also validates Brokat’s easy-to-use PaymentWorks software for its multi-channel support and payment flexibility, which enables customers to make secure payments anytime, anywhere.”

“Wireless payment offerings are the next strategic technology initiative for leading retail banks. Financial institutions are rapidly turning to vendors to help them implement mobile payment systems,” said Isabella Fonseca, Celent Analyst and author of the report. “We see two different categories of vendors playing in this field: Internet/wireless application providers and payment specific solution providers. Among the vendors evaluated, Brokat is best positioned to address mobile payment services within the Internet and wireless category of vendors, supporting multiple types of payments and providing a high customization level to financial companies. Brokat’s offerings support the needs of not only financial institutions, but also mobile carriers and m-portals. With its proven technology in the Internet payment space, we expect Brokat to build its financial and mobile payment client base quickly.”

According to Celent’s report, there are currently 4.6 million mobile payment users, with the number expected to increase to over 60 million by 2004. Many of these people will own Internet-enabled phones, creating a significant opportunity for financial institutions to provide additional services.

Brokat PaymentWorks Mobile enables the creation of secure electronic and mobile payment services, allowing customers to use mobile devices to make easy, secure payments. The key component of the PaymentWorks Mobile is the Brokat Mobile Wallet, a mobile wallet server that stores customer data needed for making purchases, such as a user’s identity, credit information, and purchasing limit.

About Brokat

Brokat Technologies is a global leader in software that enables user-centric business. Brokat’s product families — multi-channel infrastructure software, rules management and personalization technology, mobile payment software, and e-finance applications — are used by over 3,500 enterprises worldwide including ABN Amro, Allianz, Bank of America, Blue Martini Software, Charter One, DaimlerChrysler, DBS Bank, Fidelity Investments, IBM Corporation, LBBW, MasterCard International, SE-Banken, Sun Microsystems, Swiss Post Office, T-Motion (a subsidiary of Deutsche Telekom), and Toyota. Strategic partners, among others, include Compaq, Intel, IBM, Siemens, and Sun Microsystems. With dual headquarters in San Jose, California and Stuttgart, Germany, Brokat employs over 1,400 people in 17 countries. Information on Brokat and its products is available at [http://www.brokat.com][1].

[1]: http://www.brokat.com/

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PPP Names VPs

Perfect Plastic Printing announced last week the promotion of 3 senior managers to Vice President.

Wally Maier has been promoted to V.P. Manufacturing. Wally has been Director of Manufacturing for the past 3 years. He has 46 years of experience in the printing industry, and is a graduate of Rochester Institute of Technology.

Dale Pfingst is the new V.P. Quality and R & D. Dale has been with PPP for the last 8 years and is the principal architect of PPP’s Quality program. Dale has his MBA from Notre Dame and is a registered Quality Engineer.

Christopher Smoczynski has been promoted to Group Vice President. Over the last 11 years, Chris has spent a year or more in management of every department at PPP. Chris has a BS in printing from Rochester Institute of Technology.

PPP is one of the world’s leaders in secure credit card manufacturing, and has been producing the finest quality secure credit cards since 1965.

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SUM ATM Adds Up

Bank Rhode Island announced last week that it has joined the SUM Program, giving its customers surcharge-free access to over 2,500 ATMs throughout New England.

Bank Rhode Island customers can now use any SUM ATM in New England without a surcharge fee, including the 85 SUM ATMs in Rhode Island and over 1,800 throughout Massachusetts.

The Program allows Bank Rhode Island to continue to expand ATM access for its customers. Last year, the Bank signed an agreement with Atlas ATM, bringing an additional 51 machines into the Bank Rhode Island network. With the addition of the SUM Program, the Bank’s customers can now access more than 140 ATMs in the state without incurring a surcharge fee.

“We are always looking for ways to make banking more convenient for our customers,” said James V. DeRentis, Senior Vice President of Retail Banking. “This program allows us to provide our customers, many of whom work or travel all over New England, with surcharge-free access to ATMs. And our Custom Banking customers can access these ATMs free of all charges.”

Custom Banking is Bank Rhode Island’s relationship checking account. Custom Banking customers can combine all eligible account balances – deposit, mortgage and other loan balances – to meet minimum balance requirements to avoid monthly fees.

The SUM Program is administered by the NYCE Corporation and is designed to help minimize ATM fees for consumers. SUM Program members agree to provide surcharge-free transactions at designated ATMs for the customers of all participating institutions. There are presently 411 financial institutions participating in the SUM Program.

Participating ATMs can be identified by the green and gold SUM symbol displayed on the machine. A complete listing of SUM ATM locations can be found by visiting [www.sum-atm.com][1].

Bank Rhode Island, a wholly-owned subsidiary of Bancorp Rhode Island, Inc., is a full-service, FDIC-insured financial institution headquartered in Providence. As of December 31, 2000, Bancorp Rhode Island’s total assets stood at $739.4 million and total deposits were $631.6 million. Bancorp Rhode Island’s common stock is traded on the NASDAQ National Market under the symbol “BARI” and its corporate web site is located at [www.bankri.com][2].

[1]: http://www.sum-atm.com/
[2]: http://www.bankri.com/

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ICMA Singapore

The International Card Manufacturers Association (ICMA) will host a member benefits seminar for potential member companies located in the Asia/Pacific region. The meeting will be held Tuesday, April 24, 2001 at 1:00pm at the Raffles Hotel, Singapore. The meeting is being held in conjunction with the Cards Asia Show being held April 25-27.

The host of the meeting is Tai Kyo Choi, vice president of ICMA and president of KBC Corporation, Seoul Korea. The meeting will commence with a luncheon, followed by an audio-visual presentation about ICMA, the world’s leading trade association for plastic card manufacturers and personalizers, and its numerous member benefits. These include educational workshops and conferences, the annual ICMA EXPO, market surveys, networking, email discussion forum, publications, Internet site, public relations opportunities, industry referrals, discounts to ICMA events, scholarships and more.

Attendees witll also benefit from a discussion on the latest industry trends presented by Chou Fang Soong, vice president of financial services of Secu-Card Gemplus Singapore and Steven Yap, director of plastic card manufacturing of Secur-Card Gemplus Singapore. A long-time ICMA member, Gemplus is the world’s largest card manufacturer, and is represented on the ICMA Board of Directors.

Advance registration is required. To sign up or for more information on attending the meeting and ICMA membership, contact Lori Nasatka at ICMA headquarters, tel: 609-799-4900; fax: 609-799-7032; email: Inasatka@icma.com — or visit the ICMA web site at

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Bluetooth ATMs

The introduction of Bluetooth technology could have a significant impact on ATM usage in the USA. NCR said last week that the combination of access to mobile media and the print and delivery facilities available at the ATM machines could open up a number of new opportunities for those with a mobile lifestyle. Bluetooth provides the link between the mobile world and self-service, whereby the consumer carries the interface. As an example of the benefit of this potential shift via Bluetooth, consumers can now order tickets to an event while away from home or the office. However, they either have to await delivery or arrange to collect at a venue convenient to the distributor. Using today’s web-enabled ATMs, coupled in the future with mobile access, consumers could not just order the tickets, but receive them at their ATM or collect them at a location they determine as convenient.

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CTAL Card Sale

Canadian Tire Acceptance Limited confirmed Friday the sale of its Hamilton Discount Corporation Limited subsidiary to The Associates. Hamilton is a provider of private label credit card programs to some of Canada’s largest retailers. As part of the deal, The Associates will also purchase from CTAL outstanding credit charge receivables managed on behalf of a third-party retailer. Total cash proceeds from both transactions will exceed $135 million with a net pre-tax gain to CTAL of approximately $8 million. The deal does not affect Canadian Tire’s other credit card products including the ‘Options MasterCard’ and proprietary Canadian Tire retail card. Both cards are profitable, growing about 24% annually. Under last week’s agreement, The Associates will retain all 117 HDC employees across Canada and will continue to operate as Hamilton Discount Corporation Limited.

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Merchant Services Synapse

U.S. Wireless Data, Inc. announced that it has signed an agreement with Merchant Services Inc., a leading credit/debit card acquirer and independent sales organization, to offer wireless, high-speed credit card authorization services via USWD’s Synapse platform.

U.S. Wireless Data’s platform will enable MSI to offer state-of-the-art wireless processing services to its merchants. A company that has experienced revenue growth of over 700% in the past two years, MSI is projecting a substantial increase in wireless merchant accounts. MSI, by utilizing Synapse, will be able to provide more services to their existing wireless clients as well as being able to provide a full service solution to new clients, who wish to benefit from the speed and mobility that U.S. Wireless Data can provide.

MSI will sell U.S. Wireless Data’s wireless solutions through its sales force of approximately 700 sales representatives across 75 offices nationwide. The company targets small to mid-sized merchants, currently serving approximately 60,000 merchants. MSI is one of the largest independent sales organizations of Global Payments Inc. (NYSE: GPN), a leading provider of payment and electronic commerce solutions, and one of the largest card transaction processing companies in North America.

“We are excited to be working with MSI to provide wireless credit card services to the important market of small and mid-sized merchants,” said Dean M. Leavitt, Chairman & CEO of U.S. Wireless Data. “Many of the key merchant categories for wireless are in this segment of the market–such as towing services, movers, restaurants, locksmiths, taxis and limos. We are confident that U.S. Wireless Data will provide a superior wireless solution to MSI’s merchants.”

“U.S. Wireless Data prides itself on providing the most advanced wireless terminal technology in the bankcard industry today,” said Ray Sidhom, President and CEO of MSI. “This relationship will help MSI to provide more services to our current merchant base as well as potential new merchants. Synapse’s online, real-time transaction reporting capability will provide valuable information to help our merchants better manage their businesses. Utilizing U.S. Wireless Data’s Synapse platform, we expect to sign up approximately 2,500 wireless merchant accounts annually.”

“Global Payments Inc. is excited about the new opportunities that U.S. Wireless Data’s wireless platform opens up to us,” said Vaden Landers, Managing Director, ISO Line of Business, for Global Payments Inc. “We are pleased to offer Synapse through our independent sales organization, MSI, to meet the growing demand for wireless services.”

In August 2000, Global Payments Inc. announced a two-year transaction processing agreement to offer wireless, high-speed credit card authorization services utilizing U.S. Wireless Data’s Synapse platform, to new and existing merchants of Global Payments through its network of banks and acquirers.

About U.S. Wireless Data, Inc.

U.S. Wireless Data, Inc. ([www.uswirelessdata.com][1]), founded in1991, markets proprietary technology that brings together three large, rapidly growing industries – transaction processing, wireless data transport and the Internet – to enable wireless payment processing. The company’s Synapse(sm) platform provides a gateway among all of the parties within a wireless point-of-sale (POS) transaction. This enables businesses that require mobility (i.e., not tethered to a telephone line), or fixed-location business that seek faster transaction speed, to accept wireless point-of-sale payments. By providing a seamless interface among merchants’ POS terminals, wireless carriers and card processors, credit, debit and other card transactions can be processed as fast as cash, without the cost and inconvenience of a telephone line. In addition, Synapse’s Internet-based tools offer on-line, real-time transaction monitoring, remote diagnostics and automated terminal activation. The company is headquartered in New York City.

About Merchant Services Inc.

Merchant Services Inc. ([www.gotomsi.com][2]), located in Plainview, NY, was founded in 1989. MSI has 75 offices nationwide and approximately 700 sales representatives. The company targets small to mid-sized merchants, and currently serves approximately 60,000 merchants. MSI’s revenues have grown close to 700% over the past two years. For yearend 2000, MSI is projecting approximately 3 billion in processing volume and approximately 60 million in transaction volume. In the past year, MSI has completed 7 portfolio acquisitions.

About Global Payments

Global Payments Inc. (NYSE: GPN) ([www.globalpaymentsinc.com][3]) is a leading provider of electronic transaction processing services to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations. Global Payments offers a comprehensive line of payment solutions, including credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, check verification and recovery, terminal management, and funds transfer services.

[1]: http://www.uswirelessdata.com/
[2]: http://www.gotomsi.com/
[3]: http://www.globalpaymentsinc.com/

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CIBC 4Q/00

CIBC reported Friday that credit card balances grew 22% during the quarter ending Jan 31. CIBC is the number one card issuer in Canada with a total portfolio of more than 3.2 million accounts and more than $8 billion in outstanding balances. In the premium card segment, CIBC has more than 40% of market share based on purchase volumes. Revenue was $260 million in the quarter, up $46 million from the first quarter of 2000 due to rising balances and a 22% increase in purchase volumes. Revenue was up $8 million from the prior quarter. For complete details on CIBC’s latest quarter visit CardData (www.carddata.com).

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